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HomeMy WebLinkAbout06-23-2009 CC Item 02CITY OF LAI E LSII` ORf DREAM EXTREME REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: JUNE 23, 2009 SUBJECT: APPROVAL OF MINUTES Discussion The following meeting minutes are submitted for approval: a) City Council / Redevelopment Agency SPECIAL Joint Budget Study Session Meeting Minutes from May 21st, 2009. b) City Council / Redevelopment Agency Joint Study Session Meeting Minutes for May 12th, 2009. Recommendation Approve the Minutes as submitted. Prepared by: Debora Thomsen i% City Clerk Approved by: Robert A. Brady City Manager CC June 23, 2009 [tern No. 2 Page 1 of 18 Page 1 of 9 CITY OF LAKE ELSINORE JOINT CITY COUNCIL / REDEVELOPMENT AGENCY STUDY SESSION - AGENDA REVIEW MINUTES May 121h, 2009 CITY COUNCIL CALL TO ORDER - 4:00 PM Mayor Magee called the regular meeting of the Lake Elsinore Joint City Council / Redevelopment Agency Agenda Review Study Session to order at 4:00 p.m. on Tuesday, May 12th, 2009 in the Cultural Center, located at 183 N. Main Street, Lake Elsinore, CA 92530. PRESENT: Mayor Magee, Mayor Pro Tern Melendez, Councilmember Bhutta, Councilmember Hickman. ABSENT: Councilmember Buckley. Also present: City Manager Brady, City Attorney Leibold, and City Clerk Thomsen. Staff members present included Acting Administrative Services Director Riley, Acting Community Development Director Weiner, Public Works Director / City Engineer Seumalo, Director of Lake and Aquatics Kilroy, Parks and Recreation Director Gonzales, and Information / Communications Manager Dennis. PRESENTATIONS/CEREMONIALS Proclamation to recognize Eagle Scout Jonathan Lawrence Sandberg Proclamation to recognize National Public Works Week Northwest Mosquito Abatement & Vector Control District Presentation The City Clerk confirmed for Mayor Magee Eagle Scout Sandberg would be present tonight and City Engineer Seumalo would be receiving the Proclamation for Public Works Week. CC June 23, 2009 Item No. 2 Page 2 of 18 Lake Elsinore City Council Agenda Joint Study Session for Agenda Review Meeting of May 12, 2009 Page 2 of 9 Mayor Magee stated the Presentation by the Vector Control District would be approximately 6 to 10 minutes in length and their representative is Jacob. PUBLIC COMMENTS- NON-AGENDIZED ITEMS - 1 MINUTE NONE None. PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES None. CONSENT CALENDAR (2) Approval of City Council Minutes NO COMMENTS / QUESTIONS Recommendation: Approve the following minute(s): (a) Joint Study Session - Agenda Review City Council / Redevelopment Agency - March 24, 2009 (b) Regular Meeting of the City Council - March 24, 2009 (3) Warrant List Dated April 30, 2009 Recommendation: Authorize payment of Warrant List dated April 30, 2009. Councilmember Hickman questioned the charge by Brothers Towing Warrant No. 99375. Acting Administrative Services Director Riley provided the information. (4) Claim Against the City NO COMMENTS / QUESTIONS Recommendation: Reject the Joann Stewart claim and direct the City Clerk's Office to send a letter informing the claimant of the decision. (5) Implementation and Administration of New 'Disadvantaged Business Enterprises' (DBE) Goals Recommendation:. Submit completed Implementation Agreement to CALTRANS District Local Assistance Engineer (DLAE) for their approval. Councilmember Hickman asked City Attorney Liebold if the City has been out of compliance. She referred the question to City Engineer Seumalo. Mr. Seumalo stated the City has been in compliance, and this item is to CC June 23, 2009 Item No. 2 Page 3 of 18 Lake Elsinore City Council Agenda Joint Study Session for Agenda Review Meeting of May 12, 2009 Page 3 of 9 adopt Caltrans' guidelines, which would allow the City to apply for additional Federal funding. Councilmember Hickman questioned the signal timing at Dexter and Central Avenues. Mr. Seumalo stated the signal is not working properly; the loops are not working due to the conditions of the street, the timer is on fixed time. He noted the City along with Caltrans, have been in the field directing traffic to avoid prolonged delays. Mayor Magee stated he had received a phone call from Virgil at Caltrans who brought to the Mayor's attention a Federal law related to disabled and crippled veterans and questioned if this item was in relation to solicit services from veterans. Mr. Seumalo responded this was in fact related. (6) Communications Site Lease Agreement - McVicker Park NO COMMENTS / QUESTIONS Recommendation: Authorize the City Manager to sign the Communications Site Lease Agreement and all necessary documents to finalize the agreement with Royal Street Communications to install a wireless cellular tower and equipment enclosure at McVicker Park. PUBLIC HEARING(S) (7) Tentative Parcel Map No. 36017 and Residential Design Review No. 2007-12 for a Project Identified as "Lakeshore Villages" Recommendations: (1) Adopt a Resolution adopting findings that the project is consistent with the Multiple Species Habitat Conservation Plan (MSHCP). (2) Adopt a Resolution approving Tentative Parcel Map No. 36017. (3) Adopt a Resolution approving Residential Design Review No. 2007-12. Mayor Pro Tern Melendez questioned if the applicant was here (he was not) and asked why half of the project site is being considered for conservation. The Mayor confirmed this statement was accurate from reading Page 6 of 57, Line Number 5, Paragraph 5, Sentence 1. Acting Community Development Director Weiner responded the language was "Boiler-Plate" language and incorrect. He stated staff would have the Resolution CC June 23, 2009 Item No. 2 Page 4 of 18 Lake Elsinore City Council Agenda Joint Study Session for Agenda Review Meeting of May 12, 2009 Page 4 of 9 corrected before the Council meeting at 7:00 p.m. and thanked Mayor Pro Tern Melendez for catching this. Mayor Pro Tern Melendez questioned the hours of construction, noting Lake Elsinore's standard construction hours are from 7:00 a.m. to 7:00 p.m. and asked why the hours were changed to 7 a.m. to 5 p.m. She questioned if there were complaints from the neighborhood. She noted the Planning Commission meeting minutes state the applicant requested the specific hours of 7:00 a.m. to 7:00 p.m. Mr. Weiner stated the original project had residents who were concerned with the noise and had asked the construction time be adjusted to 5:00 p.m. He further noted the hours were left the same as a convenience to the residents. He stated if the hours were to be changed; this could be decided by Council tonight. Councilmember Bhutta questioned the City Attorney regarding the affordability definition, and whose terms the City is following. She also requested if the project was following Pro-forma guidelines. City Attorney Leibold responded, stating the California Government Code gives specific definitions of very-low-income, low-income and moderate-housing and how they apply to Redevelopment Agencies. One requirement states 15 percent of the units are required to meet the inclusionary obligations. Regarding the Pro-forma, originally the project was brought to the Redevelopment Agency requesting financial assistance, but since that time, the developer has decided to move the project forward without assistance. Currently, there is no need for a Pro-forma, unless the developer chooses this option in the future. These affordable units will count toward our inclusionary requirement with Southern California Association of Governments (SCAG). Mayor Magee referred to the construction noise hours, stating although the hours can go until 7 p.m. it is frustrating to come home from work at 5 p.m. and hear saws and hammers going. He stated originally the time limit of 5 p.m. was approved for the mobile home park located nearby when there was not any homes near the site. Since that time, the surrounding area has been developed creating a buffer to the noise, however, the Mayor recommended Mr. Weiner keep the construction hours ending at 5 p.m. (8) No. 2008-09 for a project identified as `Lake Street Market Place' Recommendation: (1) Adopt a Resolution adopting findings that the project is consistent with the Multiple Species Habitat Conservation Plan (MSHCP). CC June 23, 2009 Item No. 2 Page 5 of 18 Lake Elsinore City Council Agenda Joint Study Session for Agenda Review Meeting of May 12, 2009 Page 5 of 9 (2) Adopt a Resolution adopting Mitigated Negative Declaration No. 2008-10. (3) Adopt a Resolution approving General Plan Amendment No. 2008-01. (4) First reading of an Ordinance approving Zone Change No. 2008-02, waive further reading. (5) Adopt a Resolution approving Commercial Design Review No. 2008-09. George McDonough spoke stating the planning process of the City needs to be reviewed especially since their decisions are irreversible. He stated the posting of meetings by the developer were not in compliance with notification rules, stating the Mayor acted appropriately when he removed the item from the Agenda. Mr. McDonough gave several existing examples of problems related to safety and traffic. He stated the Planning Commission should have confidence in their staff; if staff makes a recommendation, they should follow it. At the Planning Commission, the developer did not speak, yet residents commented on the parking and traffic issues, etc. Mr. McDonough stated the Planning Commission voted to issue a Negative Declaration and a Variance to change zoning from residential to commercial and made other allowances. He further stated the Developer held distorted neighborhood meetings noting they were out of control noting 1 Councilmember and 2 reporters who left early in disgust. Questions which were asked of the developer were not answered. Mr. McDonough handed in a petition with 28 signatures against and 2 for the project, yet the Developer instructed Council to take their petition with a grain of salt. He stated the property is zoned residential, road repairs are needed, yet why did the property owner purchase residential property and feel confident in 2 to 3 years he would receive a zone change to commercial. This sets precedence for others to request zone changes. Araceli Jiminez spoke regarding the Mitigated Negative Declaration stating on Page 25 and 72, questions if the project has an environmental impact on others. Issue C on Page 75 actually states the project does not have potential to affect humans with impact is expected to be less than significant. She stated this is not true, stating this project will have a severe impact on her husband's health and has Valley Fever. Ms. Jiminez stated she met with the developer, and told him of her circumstances and asked him to make an offer for their property, but he only offered temporary living arrangements. She requested when Council considerers their decision, to remember the Mitigated Negative Declaration and all aspects of this project will have on residents. CC June 23, 2009 Item No. 2 Page 6 of 18 Lake Elsinore City Council Agenda Joint Study Session for Agenda Review Meeting of May 12, 2009 Page 6 of 9 APPEAL(S) None. BUSINESS ITEM(S) (9) Lake Elsinore Municipal Code Waivers for National Jet Boat Association Special Event Recommendation: Waive the Lake Elsinore Municipal Code sections listed below for the proposed National Jet Boat Association Special Event, subject to compliance with all other conditions for the event as approved by the City Manager. Waive Lake Elsinore Municipal Code Sections: 9.96.120 Boat Speed Limits 9.96.200 Motorboat Noise 8.40.040A Alcohol is prohibited in City parks 9.28.030 Furnishing alcoholic beverages in public 8.40.060E Lake Use Pass Lake and Aquatics Director Kilroy gave an overview of why the Jet Boat Association was requesting specific changes for this special event. Councilmember Hickman suggested there be a welcoming tent to thank them for returning to Lake Elsinore and to make them feel welcome. Mayor Magee stated the last time they were here there was only one unfortunate mishap due to uncontrollable circumstances. He verified Director Kilroy was comfortable with the new layout noting if the winds change the audience is at a safer distance (10) Second Reading - Amendment to Section 16.83.040. Part 'A' of the Lake Elsinore Municipal Code Regarding the Transportation Uniform Mitigation Fee (TUMF) NO COMMENTS / QUESTIONS Recommendation: Adopt the attached Ordinance entitled: ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING SECTION 16.83.040, PART A OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING THE TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) CC June 23, 2009 Item No. 2 Page 7 of 18 Lake Elsinore City Council Agenda Joint Study Session for Agenda Review Meeting of May 12, 2009 Page 7 of 9 (11) Fiscal Year 2008-09 Third Quarter Budget Report Recommendation: Receive and File. Councilmember Hickman noted the item regarding weed abatement to be done twice a year, stating it is fire season year round and asked if the owners were notified. City Manager Brady noted abatement was done twice a year due to the terms of an Ordinance, which could be re-evaluated and confirmed the owners were notified. REDEVELOPMENT AGENCY CALL TO ORDER - 4:37 PM Vice Chair Butta called the regular meeting of the Lake Elsinore Joint City Council / Redevelopment Agency Agenda Review Study Session to order at 4:37 p.m. ROLL CALL PRESENT: Mayor Magee, Mayor Pro Tern Melendez, Councilmember Bhutta, Councilmember Hickman. ABSENT: Councilmember Buckley. Also present: City Manager Brady, City Attorney Leibold, and City Clerk Thomsen. Staff members present included Acting Administrative Services Director Riley, Acting Community Development Director Weiner, Public Works Director / City Engineer Seumalo, Director of Lake and Aquatics Kilroy, Parks and Recreation Director Gonzales, Police Chief Cleary, Fire Chief Hendershot, and Information / Communications Manager Dennis. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE None. PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES CC June 23, 2009 Item No. 2 Page 8 of 18 Lake Elsinore City Council Agenda Joint Study Session for Agenda Review Meeting of May 12, 2009 Page 8 of 9 None. CONSENT CALENDAR (2) Approval of Redevelopment Agency Minutes NO COMMENTS / QUESTIONS Recommendation: Approve the following minute(s): (a) Regular meeting of the Redevelopment Agency - March 24, 2009 (3) Warrant List Dated April 30, 2009 NO COMMENTS / QUESTIONS Recommendation: Authorize April 30, 2009. payment of Warrant List dated PUBLIC HEARING(S) None. BUSINESS ITEM(S) None. CITY ATTORNEY / AGENCY COUNSEL COMMENTS City Attorney Leibold announced the Closed Session for the Redevelopment Agency has been postponed. REDEVELOPMENT CLOSED SESSION (1 A) CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code § 54956.8) Property: 154 North Main Street, 156 North Main Street, 158 North Main Street Agency Negotiator: Executive Director Brady Negotiating parties: Lake Elsinore Redevelopment Agency and Tenants Irma Y Leonardo Lee (154 North Main Street); and Eduardo Ramirez Mosqueda (156 North Main Street); and CC June 23, 2009 Item No. 2 Page 9 of 18 Lake Elsinore City Council Agenda Joint Study Session for Agenda Review Meeting of May 12, 2009 Page 9 of 9 Paula Lopez / Super Saver, Inc (158 North Main Street) Under negotiation: Rent and terms of payment CITY COUNCIL CLOSED SESSION City Attorney Leibold gave an overview of the following City Council items which would be discussed in Closed Session: (1A) CONFERENCE INVOLVING A JOINT POWERS AGENCY (SOUTHWEST COMMUNITIES FINANCING AUTHORITY) (GOV'T CODE § 54956.96) Discussion will concern: Conference with real property negotiator: Property - APN 370-060-050 southeast of Corydon/west of Mission Trail Agency negotiator - Dean Deines Negotiating parties - Animal Friends of the Valleys and Elsinore Valley Municipal Water District Under negotiation - Price/terms/Conditions of Payment Name of local agency representative on joint powers agency board: Councilman Thomas Buckley (113) CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Gov't Code § 54956.9: 1 potential case (1C) CONFERENCE WITH LABOR NEGOTIATOR (Gov't Code § 54957.6) City Negotiator: City Manager Robert Brady Employee Organization: Lake Elsinore Chapter of Laborer's International Union of North America, Local 777 ADJOURNMENT There being no further business to come before the City Council and the Redevelopment Agency, the meeting was adjourned at 4:40 p.m. Debora Thomsen Debora Thomsen, CMC City Clerk, City of Lake Elsinore, California CC June 23, 2009 Item No. 2 Page 10 of 18 Page 1 of 8 CITY OF LAKE ELSINORE SPECIAL JOINT BUDGET STUDY SESSION CITY COUNCIL / REDEVELOPMENT AGENCY MEETING MINUTES May 21", 2009 CALL TO ORDER - 5:00 PM Mayor Magee called Joint Study Session of the Lake Elsinore City Council, and Redevelopment Agency to order at 5:00 p.m. on Wednesday, May 21 s`, 2009 in the Cultural Center, located at 183 N. Main Street, Lake Elsinore, CA 92530. PLEDGE OF ALLEGIANCE The pledge of allegiance was led by Mayor Pro Tern Melendez. ROLL CALL: Staff members present included Acting Administrative Services Director Riley, Acting' Community Development Director Weiner, Public Works Director / City Engineer Seumalo, Director of Lake and Aquatics Kilroy, Parks and Recreation Director Gonzales, Police Chief Cleary, Fire Chief Hendershot, and Information / Communications Manager Dennis. Also present: City Manager Brady and City Clerk Thomsen. STAFF OVERVIEW CITY OPERATING BUDGET Mayor Magee addressed everyone present noting the budget discussion or decisions made today would not be a popular subject due to the fact the easy decisions were previously made. He noted the City's revenue has declined 16 percent since 2007. He requested Acting Administrative Services Director Riley to give an overview of the current situation. Acting Administrative Services Director Riley stated the City is looking at a projected $3.0 million budget deficit for Fiscal Year 2009 - 2010. He further stated this budget shortfall is the net result of a $4.2 million decrease in revenue, offset by a $1.2 million decrease in expenditures. A continued decrease in sales tax and property taxes, along. CC June 23, 2009 Item No. 2 Page 11 of 18 Lake Elsinore Joint City Council / Redevelopment Agency Special Joint Budget Study Session Meeting Minutes of May 21s`, 2009 Page 2 of 8 with the use of one-time funds to cover the unexpected budget shortfall in Fiscal Year 2008 - 2009 are the primary contributors to this deficit. Mr. Riley continued stating this is the third fiscal year the City has had to reduce the budget to compensate for declining revenues, noting the following issues have contributed to the revenue shortfall for Fiscal Year 2009 - 2010. • Local Sales tax.revenue is down by $505,330. or 8%a, due to laggard auto sales and the reduction in consumer spending; and • Property tax revenue in Riverside County continues to decrease due to reassessment of property values downward, translating to a %336,800. or 5% decline in revenue to the City; and • One-time money in Fiscal Year 2008 - 2009 from non-general fund sources and the sale of property are not available for Fiscal Year 2009 - 2010, and account for $1.3 million in reduced revenue; and • Supplemental revenue of $1,015,000. was used in Fiscal Year 2008 - 2009 to cover that year's budget shortfall. These funds were used from a "rainy day" reserve fund, which currently has a balance available of $2.8 million. Mr. Riley noted an expenditure we have due to,the State of California. Lake Elsinore stated the City contracts with Cal-Fire, the State Fire Service. The Governor in May implemented in May, 2009 implemented 2 furlough days a month, in which this funding has been passed down to the City. Mr. Riley noted the California Statewide ballot Propositions 1A through 1E were not approved. In May, the Governor's revised budget included a contingency plan in the event the State were to barrow money from local government. He reminded everyone in 2004 the voters did pass Proposition 1A which was a fail-safe for municipalities limiting the state to borrow up to 8 percent and included other initiations. If the State were to take the funds the impact would be a $685,000. reduction increasing our deficit. Mr. Riley continued stated there are expenditures which should be addressed which will impact the budget: • The operating cost of the new Rosetta Canyon fire station is estimated at $1.2 million annually. An increase in development in the future would provide funding to offset that annual cost; and • The City would be responsible to resume its contribution to the Lake Management Fund. The City has received verbal agreement with Eastern, Valley Municipal Water District in regard to forgoing the Fiscal Year 2009 - 2010 payment. This payment amount is $650,000. annually; and • The Animal Friends of the Valley new animal shelter is scheduled from completion in mid 2010. The City's cost for animal services will increase from $90,000. to $600,000. annually; and CC June 23, 2009 Item No. 2 Page 12 of 18 Lake Elsinore Joint City Council / Redevelopment Agency Special Joint Budget Study Session Meeting Minutes of May 21't, 2009 Page 3 of 8 • In Fiscal Year 2011 - 2012 the employer contribution rate to the California Public Employees' Retirement System (CALPERS) is anticipated to increase by 15 to 25 percent to offset the significant losses in the pension investment revenue that occurred in Fiscal Years 2007 - 2008 and 2008 - 2009. The City's current employer contribution rate is 16.485 percent. Mr. Riley stated the goal of this meeting is to determine how to cover the 3.1 million' deficit shortfall. Staff has prepared 3 alternatives (Page 5 of 7 in handout) based upon discussion with the Budget Committee, Council, Department Directors, and the employee's Labor Union. He noted this morning, the Labor Union has offered a 4th alternative, and copies will be arriving shortly. Mr. Riley then stated his presentation was complete and he would be available for any questions as needed. Mayor Magee thanked Mr. Riley for his overview, and stated the meeting would move forward to the Public Comment portion of the meeting. PUBLIC COMMENTS Ron Hewison representing Help our People in Elsinore (HOPE) stated he recognized the tough situation the City was in due to the slow economy. He noted his organization is dependent upon financial assistance from various government sources, such as CDBG grants but noted it is the assistance from the City that carries them through the lean months. Mr. Hewison stated he has reviewed the documentation available and did not specific funding for organizations, and wanted to let the City know he would be greatly appreciative of any continued support. Kathy Delgado, representing the employee's Labor Union stated she felt at a disadvantage since the Council does not have Alternative No. 4 to review as she is referencing the proposal. She recommended they look at Alternative No. 3, eliminate the employee's PERS contribution out, foregoing Cost of Living Adjustments (KOLA) and Merit increases. The Alternative leaves the furlough day at 1. She noted the purpose of this was to keep the current situation as it is now, with the goal to maintain City Services and the workforce while this financial crisis exists. Employees would not gain or lose (except a 5 percent pay cut from what they would not be receiving). Ms. Delgado noted this would require approximately $1,368,338. to be taken from the rainy day fund. She noted if this Alternative is not acceptable, then the employees preferred choice is Alternative No. 2; to take 2 fixed furlough days a month, on Fridays.: Ms. Delgado noted this is idea is becoming a popular choice for many cities, noting 26 cities throughout Riverside County are enacting this with their new budgets, including the State of California. She closed by stating another city who had chosen to reduce their hours informed their community it was due to the fiscal emergency situation, and they were being fiscally responsible to lack of funds. CC June 23, 2009 Item No. 2 Page 13 of 18 Lake Elsinore Joint City Council / Redevelopment Agency Special Joint Budget Study Session Meeting Minutes of May 21 s', 2009 Page 4 of 8 Jess Culpeper, City employee, spoke stating he wanted to reaffirm staffs commitment to the City of Lake Elsinore and to the residents. He noted staffs preference is Alternative No. 4, which keeps service levels at present and avoids layoffs. He noted staff would like the best solution for all, and wanted management to know they can count on staff for support regarding any decision. Shawn Slater, City employee stated he had been elected as one of the staff spokesperson. He informed the Council any decisions made by staff were not easy, many hours have been spent weighting different suggestions, both positive and negative. Their decisions do not come lightly; they have analyzed and have decided Alternative No. 4 is their recommendation to the Council. Mr. Slater noted the employees are deeply committed and have been demonstrating this by their existing actions. Many turn the lights and electricity on and off when needed to save costs, many work additional hours. yet do not take additional pay, many sign up for needed training yet do not request reimbursement from the City. Everyone is committed and will continue to give their best. There were no other Public speakers; the Mayor brought the discussion to the dais. CITY COUNCIL COMMENTS / REDEVELOPMENT AGENCY Mayor Magee thanked the Budget Committee, City Manager Bob Brady, and Acting Administrative Services Director Riley for their time and commitment to analyze and determine what could be done to balance the budget deficit. He noted this process began in January, when it became apparent the City would be up against another difficult situation. He noted Management along with staff has worked together to. resolve deficits in the past. He noted time was going to be needed to rebound from this deficit. The current contract with the employees has 2 years remaining. Previously, when layoffs were needed and did take effect, Management committed to staff to maintain. When service levels had to be increased for Public Works, the Parks' Department and the Lake, the Council pulled 1 million dollars from the rainy day fund. The Mayor discussed Public Safety, since 2003, a second and third Fire Station was opened, and the fourth Station, (Rosetta) is ready to open, yet funding for the staff has become a problem. Negotiations with the County including Supervisor Bob Buster has not brought a resolution, therefore, staffing this station is now a sacrifice. Referencing the Police Station, he noted the City has decreased the. crime rate by adding more CC June 23, 2009 Item No. 2 Page 14 of 18 Lake Elsinore Joint City Council / Redevelopment Agency Special Joint Budget Study Session Meeting Minutes of May 21", 2009 Page 5 of 8 boots on the streets, boats on the Lake, and 2 Motor Patrols. He noted the proposed cuts from Police include 2 motor patrol, 2 Community Service Officers, 1 Gang Task Force Officer and a reduction of response time. If no changes are made and the Police remain as is, there will be a half-a-million increase to their budget, due to the existing contracts, increasing the shortfall. He noted a reduction in services would have to be made. Mayor Magee stated the Police had turned in an additional Alternative this afternoon for consideration. Mayor Magee noted with each Alternative and Negotiation, the answer is always to withdraw money from the rainy day fund, however, this is not a solution but a sacrifice; there is not enough money and nothing is resolved. The Mayor stated Alternative No. 1' seem to be both fair and equitable. It called for a 10 percent salary reduction for all employees, both full and part time. By choosing this option, the employees keep their jobs and the community maintains their services. He went on to say additional furlough days will need to be taken, but closing every Friday was not an efficient tool. The Mayor thanked the employees for always giving their best, and wanted them to know they are valuable and their commitment does not go unnoticed. His hope is not to have to eliminate jobs. He regretted there was not more residents from the community present, stating the goal is to protect and serve the community without raising taxes. Councilmember Buckley stated he would of appreciated reviewing Alternative No.4 earlier than when received. He noted he preferred Alternative No. 2 with the exception of closing City Hall every Friday. He preferred the option of clumping furlough days off with holidays including the seasonal adjustments. He noted tomorrow decisions regarding the Animal Shelter would be made, which would affect the budget. Regarding reducing Police positions, he would like to keep the Narcotic Task Force Officer and asked Police Chief Cleary how many members the Force had. Chief Cleary stated' there were a total of 5 officers; however, these are not all Lake Elsinore officers, the County. He stated if other cities make this same choice, then as a whole body, this Task Force may no longer exist. Councilmember Buckley noted the motor patrols were needed, stating if they were cut, Alternatives No. 5 and 6 would be too deep. Councilmember Buckley noted he would consider cutting COLA's. Councilmember Hickman thanked Management, Staff and the Police Department for a job well done. He noted he did not want to lay anyone off in these tough economic times, it ruins families and lives. He stated his preference was Alternative No. 2 noting if employees were wiling to take an additional day off Friday was acceptable. He noted he is also in favor of closing between Christmas and New Years. He stated Scenario No. 6 from the Police Department was the best choice. He noted he is willing to take funds from the rainy day fund, however, the City needs to be concerned regarding future decisions the State will make, taking money from cities to balance their State budget. CC June 23, 2009 Item No. 2 Page 15 of 18 Lake Elsinore Joint City Council / Redevelopment Agency Special Joint Budget Study Session Meeting Minutes of May 21 2009 Page 6 of 8 Councilmember Bhutta stated in her profession they were going to be taking furlough days also. She noted her 1st preference is Alternative No. 3 with the pre-tax deductions, however, after listening to tonight's discussion; her 2nd choice is Alternative No. 2. She requested staff if Alternative. No. 2 was the final decision, to please take this day to make personal appointments on Fridays and not on working days when possible. Mayor Pro Tern Melendez thanked everyone present, especially those who are making sacrifices, especially because they are committed to their jobs and to the community. She thanked the employees for offering to contribute to CALPERS. She noted the State is projected to take an additional $700,000. from Lake Elsinore, noting this is not a definite number yet, any funds they receive would increase our deficit. She stated she is not in favor of closing every Friday, or of the clumping of furlough days with holidays and seasons, this is too confusing. She noted if the City were closed on Friday, and Monday was a holiday, then the City would not be available for service to the community until Tuesday. She reminded everyone the City has an obligation to be there for business owners too and stated she is against closing every Friday. Mayor Pro Tern Melendez asked the Police Chief how much Scenario No. 6 would affect safety and traffic issues. Chief Cleary summarized the potential impact to traffic and safety, and stated losing 2 motor patrol officers would cause a grave impact. He noted crime has dropped due to the motor patrols, they are a pro-active enforcement.' They have made 111 Driving Under the Influence (DUI's) arrests annually, have saved a suicide due to their quick response. He noted losing the Narcotics Task Force officer would hurt also, since there was only 1 officer on the Narcotics Task Force. Mayor Pro Tern Melendez stated she doesn't prefer one option over the other. City Manager Brady gave input for each Alternative how much was proposed to be taken from the rainy day fund. Mayor Pro Tern stated she was having difficulty deciding' taking half of the rainy day fund. Mayor Magee summarized what had been stated so far by Council, for Staff, Alternative No. 2 seemed the most popular, and for the Police Department, Scenario No. 6. He then stated in reference to Alternative No. 2, there are 365 days in a year, 104 days are Saturdays and Sundays, employees have 12 Vacation Days at a minimum, 13 Holidays, and then add 52 furlough days of Alternative No. 2, which equal 181 days off in total. The working days equal 184. The Mayor then stated if you add the 12 sick days, the count is 193 days off and 172 days on. The Mayor stated he is not in favor of Alternative No. 2. Councilmember Buckley stated possibly Scenario No. 4 for the Police would not cut too deeply. He stated there are new programs coming down from Washington DC, for a new COPS program, but details are not yet known. He suggested if this program was received by Lake Elsinore, then the Redevelopment Agency would not have to contribute 1.2 million as originally planned. City Manager Brady clarified the $500,000. is on top of Scenario No. 4. CC June 23, 2009 Item No. 2 Page 16 of 18 Lake Elsinore Joint City Council / Redevelopment Agency Special Joint Budget Study Session Meeting Minutes of May 21s`, 2009 Page 7 of 8 Councilmember Hickman stated he preferred Alternative No. 2; if the employees were going to take an additional pay cut / furlough day; then they should decide what day it is. Mayor Pro Tern Melendez stated she would prefer Alternative No. 4, due to taking so much money out of the supplemental fund is dangerous. Councilmember Hickman stated and again voiced his preference for Alternative No. 2. He stated the supplemental fund is to help and we should help our people, the economy will only get worse, Treasurer Baldwin, acknowledged this decision will be made with much effort and collaboration between all parties involved. He noted this is a result of the economy, and taking 51 percent of the budget is what the decision is. He noted changes in State government must be made, and it will require a ballot vote, there must be a constitutional change at the state level and until then, the State has to take the money from us. He stated Fiscal Year 2010 - 2011 won't be any easier to decide; decisions such as this are being made at all levels of government and private industry. The decision must be made to work together and to work better with less, and it can be done. City Manager Brady asked the Mayor is he could give direction to staff without Council' voting to enable Management to further negotiate with the Labor Union and possible revisions to the plans. Mayor Magee responded after listening to the Council, the predominate direction was. Alternative No. 2 for City Staff and Scenario No. 6 for the Police Department. He noted that these options were not fully supported and debate would be held regarding what would be acceptable from each choice. Furlough days if and when to take them would be up for discussion along with Scenario No. 4, 5 and 6 for the Police. City Manager Brady also confirmed from the discussion it seemed that money available from the rainy day fund would be around 1 million. He noted for the Community Service Groups the City provides funds for, the proposed budget reflects a 5 percent reduction in funding. Further discussion was held among the Council and Management regarding Alternative No. 2, taking every Friday off or the clumping of furlough days with holidays. Seasonal days off was discussed, what would be confusing to the public, and employees taking a fixed furlough day or banking the day and taking off when needed. Management stated the furlough days need to be a set day to assist in the operation of the City. CC June 23, 2009 Item No. 2 Page 17 of 18 Lake Elsinore Joint City Council / Redevelopment Agency Special Joint Budget Study Session Meeting Minutes of May 2151, 2009 Page 8 of 8 ADJOURNMENT There being no further business to come before the City Council and Redevelopment Agency, Mayor Magee adjourned the meeting at 6:07 p.m. Debora Thomsen Debora Thomsen, CIVIC City Clerk, City of Lake Elsinore, California CC June 23, 2009 Item No. 2 Page 18 of 18